Retail investors often mistakenly believe rate cuts are bullish and will profit, but history suggests otherwise. In the last two decades, we have witnessed three major rate-cutting events that occurred a few months before market peaks, each followed by 40%+ corrections. We have observed similar patterns with retail investors becoming bullish as rate cuts are announced. Markets typically become euphoric for a few months, with retail investors buying at the top, only to experience major drops shortly after.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.